Calculate variable unit costs and total annual costs, Macroeconomics

Assignment Help:

How do you calculate variable unit costs and total annual costs?

Ans) Annual units sold, 1000. Raw materials yearly cost 650. Building rent yearly cost 9000. If sales volume enhanced to 6000 units and 8000 units, what is the total year cost and unit cost for fixed variable?

Cost per unit of raw material=650/1000= 0.65

Fixed cost (Rent) =9000

Fixed cost per unit= 9000/1000= 9.00

If the sales volume enhances to 6000 units, then total cost= 12900 and cost per unit = 2.150

Variable cost+ fixed cost= (0.65*6000) + 9000= 12900 / 6000= 2.15

If the sales volume enhances to 8000 units, then total cost= 14200 and cost per unit = 1.775

(0.65*8000) + 9000= 14200 / 8000 = 1.775

 


Related Discussions:- Calculate variable unit costs and total annual costs

Analyse manipulating monetary policy, Buckley (2009) writes that the UK was...

Buckley (2009) writes that the UK was in recession for several short periods during this time, which placed further emphasis on researchingrelationships between the price of oil an

Formulate null and alternative hypotheses to test analysts, Many investors ...

Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) provides a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks

What are the international economic crisis, What are the international econ...

What are the international economic crisis A current account surplus can only take place in one nation if there is a current account shortage in another country. So it makes no

Case fair Oster, iN BOTH CITIES, AN INCREASE IN INCOME COMBINED WITH EXPECT...

iN BOTH CITIES, AN INCREASE IN INCOME COMBINED WITH EXPECTATIONS OF A STRONG MARKET SHIFTED DEMAND AND CAUSED PRICES TO RISE RAPLIDLY DURING THE MID-TO LATE 1980S. Illustrate with

Effects in addition to the direct effect on dairy prices, Subsidy programs ...

Subsidy programs are likely to have a number of secondary effects in addition to the direct effect on dairy prices. What impact do you suppose farm subsidies are likely to have on

To make a product workers concentrate on specialized tasks, The system wher...

The system where workers concentrate on specialized tasks to make a product is referred to as: A. Coincedence of wants B. Roundabout production C.Freedom of enterprise

Damaging to the economy, Why do financial crises occur and why are they so ...

Why do financial crises occur and why are they so damaging to the economy?

What is keynesian model, Q. What is Keynesian model? Keynesian model is...

Q. What is Keynesian model? Keynesian model is slightly more complicated than the classic model and it is developed in four stages by analysing four separate models. Every mode

Explain what happen to supply of good, Good X is produced in a competitive ...

Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations. The price of input A decreases.

External Economies of Scale, Why might external economies of scale be of in...

Why might external economies of scale be of interest to developing countries?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd